Yandex Increased Revenue by 30% in the Third Quarter of 2020

Yandex’s consolidated revenue in the third quarter of 2020 increased by 30% compared to the same period last year and amounted to 58.3 billion rubles. Compared to the results of the second quarter, the revenue increased by 40.8%.

Revenue excluding Yandex.Market indicators grew by 19% to RUB 53.7 billion.

Net profit excluding Market indicators increased by 18% and amounted to 9.4 billion rubles.

Adjusted EBITDA grew by 16% to RUB 16.2 billion, with a margin of 30.1%.

Search & Portal revenue increased 2% in Q3 2020 from a year ago, reflecting the gradual improvement in the ad market following the relaxation of restrictive measures. The growth was mainly due to an increase in revenue from advertising sales on the search results page and Yandex sites, which was partially offset by a decrease in revenue from advertising sales on YAN sites.

Revenue from the sale of advertising on the Advertising Network sites decreased by 18%. In the structure of the company’s total revenue in the third quarter of 2020, it amounted to 9%. The decrease in revenue from the sale of advertising on YAN sites was mainly due to the negative impact of the coronavirus pandemic on advertiser activity, as well as the reduction in partner platforms for advertising.

Revenue from the sale of online advertising increased by 6% (33.2 billion rubles) compared to the same indicator in the third quarter of 2019 and amounted to 57% of the company’s total revenue in the third quarter of 2020.

The Taxi segment brought in 18.6 billion rubles in revenue in the third quarter (58% more than a year earlier). The growth is mainly due to the good results of the foodtech direction, the growth of the Yandex.Lavka service, as well as the development of the online taxi ordering service for businesses, whose revenues are recorded on a gross basis.

Yandex.Drive’s revenue grew by 28% to 2.7 billion rubles.

The ad services segment (including Auto.ru, Yandex.Realty and Yandex.Rabot) also showed growth – revenue increased by 16% compared to last year and amounted to 1.5 billion rubles. This increase is mainly due to the improvement in car dealership activity following the weakening of the self-isolation regime.

Revenue in the Media Services segment in the third quarter of 2020 increased by 92% compared to the same indicator in the third quarter of 2019. This growth is mainly due to the growth in revenue from sales of a single subscription to Yandex services.

In the third quarter of 2020, revenue in the Experimental Segment increased by 50% to RUB 3 billion. This growth was mainly due to an increase in the income of Geoservices and Zen services, as well as the growth of the Yandex.Cloud service.

At the same time , the company’s share in the Russian search market (including search on mobile devices) in the third quarter of 2020 averaged 59.3%.

During this period, the share of search queries to Yandex on Android devices amounted to 58.7%, while in the third quarter of 2019 it was 52.8%, and in the second quarter of 2020 – 57.5%.

The share of search queries from mobile devices amounted to 62.7% of all search queries to Yandex. Mobile traffic accounted for 52.8% of search results page ad revenue in Q3 2020.

The number of search queries increased by 13% compared to the third quarter of 2019.

The number of paid clicks on Yandex and YAN sites, excluding Yandex.Market, increased by 14% in aggregate compared to the same indicator for the third quarter of 2019.

The average cost per click, excluding Yandex.Market, decreased by 12% over this period.

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This information was provided via a Yandex press release.

Dan Taylor
Dan Taylor is an experienced SEO consultant and has worked with brands and companies on optimizing for Russia (and Yandex) for a number of years. Winner of the inaugural 2018 TechSEO Boost competition, webmaster at HreflangChecker.com and Sloth.Cloud, and founder of RussianSearchNews.com.